Really, that's what the landlord should have offered you initially.

The buyers had dropped their offer down to $197 based on an appraisal that came in at 190k (the exact thing that we were drying to avoid by writing an exception into our initial counter offer).

I am just getting started learning how to analyze deals, but in my initial research, it looks like getting positive cash flow in my neck of the woods is going to be difficult. 

For example, I almost always tear out carpet and replace with tile or trafficmaster, so my flooring costs are often higher than other landlords (at least initially).  

Construction type is "steel house", which means steel studs with shed type enclosing, and I understood that the sellers built the house themselves, probably with one of those pre-engineered kits, which may explain the initial N/A (not applicable) in the oldest sales history entry.

@Sean FrickI just had some initial thoughts after reading your situation.

What you're probably hearing about I was just discussing in another thread.You use a non-amortized credit line such as a HELOC to pay off an amortized loan in a shorter time.Because amortized loans are "front-loaded" - initial payments are mostly interest - the balance comes down very slowly.Non-amortized loans pay down much more quickly.

Initially we planned to focus on fix and flips but we very quickly have realized we don't have enough equity built up to jump right into a rehab.

After reading the initial post, I was expecting more comments demonizing that pot smoker, who must be bad person and deserve what he gets. 

He returned 90 minutes later.The neighbor was arrested for Stalking with credible Threat.30 days in jail, some huge restraining orders for my tenant, and several years of probation for the neighbor.But here's where it gets interesting (a few months later) and what I found out today.We have been told by the neighbors friend that not only is the racist SOB dying, but a little about the case.He had decided from the start to plead not guilty after he was arrested.